Sileon

The figures refer to the Group unless otherwise stated. Figures in parentheses refer to the corresponding period of 2023 unless otherwise stated.

SECOND QUARTER 2024

• Revenues increased to SEK 16.4 M (13.6).
• Earnings before depreciation and amortization (EBITDA) amounted to SEK -1.5 M (-8.3).
• Earnings before interest and taxes (EBIT) amounted to SEK -6.7 M (-13.5).
• Bringing loss for the period to SEK -5.2 M (-14.2).
• Loss per share -0.1 (-0.4).

SIGNIFICANT EVENTS IN THE SECOND QUARTER

• Sileon has resolved on a previously communicated rights issue of approximately SEK 57 million

• Sileon signs agreement with Mexican bank Bankaool

• OKQ8 Bank has signed a 3-year agreement with Sileon to implement a flexible BNPL solution on its cards

• David Larsson resigns as CEO – Kent Hansson appointed acting CEO of Sileon

SIGNIFICANT EVENTS AFTER THE END OF THE PERIOD

• Sileon publishes prospectus regarding rights issue

• Sileon announces outcome of completed rights issue

• Sileon appoints Carnegie Investment Bank AB as liquidity provider

• Sileon unveils new innovative feature as part of its comprehensive SaaS offering

CEO letter

Over the past 5 years, Sileon has invested significant development resources in building a world-leading platform for BNPL-products, based on the company's 20 years of experience in payments and as a BNPL lender to customers in Europe. Sileon now offers this product to other lenders – BNPL SaaS.

We now have two banks as customers: Bankaool in Mexico will be fully integrated during the fourth quarter and will then begin marketing BNPL as an offering to its customers. OKQ8 Bank became, as the first Nordic bank, our customer at the end of the second quarter and the integration work will begin to be planned during the fall.

The company's market-leading BNPL SaaS continues to develop in a customer-driven manner, including new solutions for responsible lending that allow lenders to decide who can use BNPL, when, and where, resulting in better-tailored offers for the bank's customers and improved conversion rates

To increase the options for the lender's customers, Sileon is also now launching the ability to have a BNPL credit pre-approved.

Ongoing optimizations are being made to our cloud infrastructure to further enhance the company's scalability, security, and cost-efficiency.

The above reflects our continued commitment to innovation, customer focus, and operational quality, which positions us well for the future.

Revenues for the second quarter temporarily increased as the Processing business area was wound down, with final payments from customers as a result. Total revenues (primarily from the Payments business area) during the remaining quarters of the year will therefore reach a lower level. Revenues from BNPL SaaS are expected to start in the fall, though initially to a small extent.

Costs continue to decrease and will reduce in the same pace during the third quarter. Work to reduce costs continues, to correspond with the gradually increasing revenues.

At the end of the quarter, I became interim CEO as the board dismissed the previous CEO David Larsson.

We completed a rights issue after the end of the quarter, raising approximately SEK 55 million after issuance costs, of which SEK 20 million was used to repay a convertible loan.

Kent Hansson
Acting CEO, August 2024

For more information, please contact:

Kent Hansson, Acting CEO, Sileon AB
E-mail: kent.hansson@sileon.com
Phone: +46 702 844 348

This information is such that Sileon AB (publ) is obligated to disclose under the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication, through the agency of the contact persons set out above, on August 26^th 2024 at 7:00 a.m. CET.

About Sileon
Sileon AB (publ) has 20 years of experience in Payments and BNPL and offers innovative and responsible Buy Now Pay Later (BNPL) SaaS functionality to lenders. With Sileon's BNPL services, lenders can add BNPL to their existing transactions and operate their own B2B or B2C BNPL business. Sileon operates in a rapidly growing international market with an estimated transaction volume of USD 680 billion globally by 2025. Sileon is listed on the Nasdaq First North Growth Market, and the company's Certified Adviser is Carnegie Investment Bank AB (publ).

Two decades experience, one commitment: Your BNPL success